Nifty Strategy for 1st August | Sensex Gains, Metal Sector Shines

On Monday, the stock market witnessed gains, with both the Nifty and Sensex indices increasing.

The Nifty closed up by 107 points, and the Sensex was up by 367 points.

The metal sector saw gains of over 1.50%, while some FMCG and select pharma stocks saw intraday profit-booking despite strong momentum.

Check out this short video for detailed market update: Market Ready by Kotak Securities

Today, Indian share markets are trading on a positive note.

At the time of writing, the BSE Sensex is trading higher by 101 points. Meanwhile, the NSE Nifty is trading up by 25 points..

Among stocks, NTPC and Tech Mahindra are the top gainers from the Sensex, while Power Grid and Bajaj Finserv are the top losers.

Here’s a rundown of today’s expected market movements…

Nifty Technical Analysis:

Technically, the index took support near the 20-day simple moving average (SMA), indicating a promising reversal and suggesting further upside from current levels.

Traders following trends should take note of the trend-setting levels of 19650. If the market goes above these levels, it can reach 19850-19875.

On the other hand, if it falls below 19650, bulls may prefer to exit long positions as the market may touch 19600-19560 levels again.

Trading Strategy for Nifty:

For the Nifty, traders should closely monitor the 20-day SMA level (19650) as a crucial support.

Consider long positions if the index goes above the trend-setting levels (19650) with targets around 19850-19875 levels.

On the downside, short positions can be considered if the index falls below the 20-day SMA with targets near 19600-19560 levels.

Bank Nifty Analysis:

The Bank Nifty remained in a narrow trading range between 45700 and 45350.

If it crosses 45750, it may move towards 46000 levels.

In the Bank Nifty, cautious trading is advised, and long positions can be considered if it crosses above 45750 with targets around 46000 levels.

Nifty IT Index:

The Nifty IT index is showing a mixed trend, which is typical on the closing day of the Finance Nifty index.

Hurdles at 30200 and 30350 levels may be encountered.

For the Nifty IT index, be watchful of the above hurdles and consider long positions if it breaks above these levels, and short positions if it faces resistance and falls below these levels.

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All in all, caution is advised for day traders, and monitoring the key support and resistance levels is crucial for making trading decisions.

Stay tuned for further market updates.

See you tomorrow!

Kotak Securities

Disclaimer: The information provided in this article is based on technical analysis and does not constitute financial advice. Traders should exercise their own judgement and consult with financial professionals before making any investment decisions.